First Solar (FSLR) AI Stock Analysis

• Market Cap: $13.66B
• Dividend Yield: N/A
• Average Volume (3M): 3.09M
• Price to Earnings (P/E): 10.9
• Beta (1Y): 1.04
• Revenue Growth: 26.75%
• EPS Growth: 55.24%
• Country: US
• Employees: 6,700
• Sector: Technology
• Sector Strength: 48
• Industry: Renewable Energy Producers
• EPS (TTM): 12.02
• Shares Outstanding: 107,062,100
• 10 Day Avg. Volume: 4,277,259
• 30 Day Avg. Volume: 3,092,443
• PEG Ratio: 0.20
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.25
• Price to Cash Flow (P/CF): 4.20
• P/FCF Ratio: 6.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $252.67
• Price Target Upside: 92.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 25

First Solar's strong financial performance and undervaluation are key strengths, making it well-positioned for future growth. However, technical indicators suggest bearish momentum, and challenges highlighted in the earnings call, such as manufacturing issues and increased costs, pose risks. The strategic appointment in the executive team is a positive corporate event, but its immediate impact on stock performance is limited.

Positive Factors

Regulatory Advantage

Its US manufacturing and regulatory moat provides a competitive edge, with capacity effectively sold out through 2026.

Negative Factors

Production Issues

Q4 gross profit was significantly below estimates due to various unexpected costs and charges.

Revenue Outlook

FY25 revenue guidance will likely be slightly below consensus given the expectation for lower production of units in India coupled with persistent issues like labor shortages, interconnection congestion, and transformer availability.

First Solar Business Overview & Revenue Model

Company Description

First Solar, Inc. engages in designing, manufacturing, marketing, and distribution of photovoltaic solar power systems and solar modules. It operates through the Modules and Systems segments. The Modules segment involves in the design, manufacture, and sale of cadmium telluride solar modules, which convert sunlight into electricity. The Systems segment offers development, construction, operation, and maintenance of photovoltaic solar power systems. The company was founded by Michael J. Ahearn in 1999 and is headquartered in Tempe, AZ.

How the Company Makes Money

First Solar makes money primarily through the sale of its advanced thin-film photovoltaic solar modules. These modules are sold to utility companies, independent power producers, and commercial and industrial companies engaged in large-scale solar projects. The company's revenue model is driven by the production and sale of these solar panels, which are known for their durability and high energy yield. Additionally, First Solar generates revenue by providing operations and maintenance (O&M) services for solar power plants, ensuring their efficient and reliable operation. Key revenue streams include the direct sale of solar modules, long-term service agreements, and partnerships with major energy companies to develop and manage solar energy projects. The company's strategic focus on innovation, coupled with its global manufacturing capabilities, enables it to maintain competitive pricing and capture significant market share in the solar energy industry.

First Solar Financial Statement Overview

Summary

First Solar demonstrates strong financial health with impressive revenue and profit growth, solid balance sheet metrics, and good operational cash flows. The primary concern lies in the negative free cash flow, driven by heavy capital expenditures, which may impact long-term liquidity if not managed carefully.

Income Statement

First Solar has shown strong revenue growth with a significant increase from 2023 to 2024, indicating a healthy growth trajectory. Gross Profit and Net Profit Margins are robust with values of 44.2% and 30.7% respectively for 2024, highlighting strong profitability. The EBIT and EBITDA margins are also substantial at 33.1%, reflecting efficient operational management.

Balance Sheet

The balance sheet is solid, with a low debt-to-equity ratio of 0.08, indicating low leverage and financial stability. The equity ratio is impressive at 65.8%, showing a strong capital structure. Return on Equity is high at 16.2%, reflecting efficient use of equity. The company's liquidity is bolstered by substantial cash reserves.

Cash Flow

While the operating cash flow has improved significantly, the free cash flow remains negative, primarily due to high capital expenditures. However, the operating cash flow to net income ratio is favorable at 0.94, indicating good cash conversion. The negative free cash flow to net income ratio suggests a need for more efficient capital spending management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.21B	3.32B	2.62B	2.92B	2.71B
	Gross Profit
1.86B	1.30B	69.86M	729.95M	680.67M
	EBIT
1.39B	857.27M	-216.27M	186.06M	95.19M
	EBITDA
1.87B	1.21B	46.78M	699.37M	573.81M
	Net Income Common Stockholders
1.29B	830.78M	-44.17M	468.69M	398.36M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.79B	2.10B	2.58B	1.83B	1.75B
	Total Assets
12.12B	10.37B	8.25B	7.41B	7.11B
	Total Debt
718.80M	624.39M	193.54M	239.90M	279.23M
	Net Debt
-902.57M	-1.32B	-1.29B	-1.21B	-947.77M
	Total Liabilities
4.15B	3.68B	2.42B	1.45B	1.59B
	Stockholders Equity
7.98B	6.69B	5.84B	5.96B	5.52B
Cash Flow		Free Cash Flow
-308.08M	-784.51M	-30.24M	-302.73M	-379.51M
	Operating Cash Flow
1.22B	602.26M	873.37M	237.56M	37.12M
	Investing Cash Flow
-1.56B	-472.79M	-1.19B	-99.04M	-131.23M
	Financing Cash Flow
24.85M	336.85M	309.39M	40.55M	-82.59M

First Solar Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 131.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FSLR, the sentiment is Negative. The current price of 131.23 is below the 20-day moving average (MA) of 155.31, below the 50-day MA of 170.28, and below the 200-day MA of 209.92, indicating a bearish trend. The MACD of -10.20 indicates Positive momentum. The RSI at 29.59 is Positive, neither overbought nor oversold. The STOCH value of 7.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FSLR.

First Solar Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FSLR	75 Outperform	$13.66B	10.92	16.20%	―	26.75%	55.24%
JKS	69 Neutral	$1.16B	15.63	17.10%	13.14%	-11.91%	-87.40%
ENPH	68 Neutral	$7.66B	78.38	12.32%	―	-41.92%	-76.24%
Sector *	59 Neutral	$22.39B	11.53	-18.05%	2.31%	5.00%	-25.89%
SEDG	56 Neutral	$969.32M	―	-274.38%	―	-68.86%	-4917.87%
CSIQ	53 Neutral	$674.32M	743.80	0.03%	―	-21.68%	-99.75%
RUN	46 Neutral	$1.40B	―	-111.43%	―	-9.83%	-71.44%

First Solar Corporate Events

First Solar Appoints Nathan Theurer as New Executive

First Solar, Inc. announced the appointment of Nathan Theurer as Vice President, Global Controller and Chief Accounting Officer, effective January 6, 2025. This appointment signifies a strategic restructuring in its executive team, with Byron Jeffers transitioning to the role of Vice President, Treasurer and Head of Investor Relations, potentially impacting the company’s financial operations and investor relations positively.